AT&T Announces $16.5 Million Contract to Deliver VPN Solution for the Air Force Services Agency

Vienna, Virginia, March 18, 2008

The Air Force Services Agency (AFSVA) has awarded AT&T Government Solutions, a business unit of AT&T Inc. (NYSE:T), a contract worth up to $16.5 million. AT&T will build and transition the agency to a single cohesive network for all AFSVA locations worldwide.

AFSVA offers a full range of military and community support programs, such as troop support, dining facilities, libraries and fitness centers to help improve the quality of life for Air Force field commanders, personnel and family members around the country. AFSVA directly supports the U.S. Air Force unit-readiness mission by providing a physically and mentally fit force.

Under the terms of the contract, AT&T will harness its state-of-the-art Multiprotocol Label Switching (MPLS)-enabled network, which is a highly secure data network that deploys an Internet Protocol (IP) Virtual Private Network (VPN) solution. This IP VPN solution will enable AFSVA to integrate all 107 locations, including 22 that are outside the U.S., into a single streamlined IP communications platform with consistent standards and capabilities. AT&T's MPLS network-based security will help AFSVA securely process millions of non-appropriated funds that are moved through the AFSVA banking system daily.

"Protecting important information of individuals in a global setting is a major imperative for organizations that support the armed forces," said Don Herring, senior vice president, AT&T Government Solutions. "AT&T's reliable, secure, global network infrastructure will help the Air Force Services Agency safeguard the personal and financial information that affect Air Force operations and personnel."

The contract is for four years with six one-year options.

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About AT&T Government Solutions
AT&T Government Solutions is a long-standing, trusted source of network-enabled solutions for the federal government, integrating unmatched network resources and IT and software engineering expertise with innovative technologies from AT&T Labs and industry-leading partners. With headquarters in Vienna, Va., AT&T Government Solutions is best known for network leadership in voice, data, video and managed services. AT&T Government Solutions is a proven solutions integrator, with expertise in areas such as education and training, enterprise resource planning and management, information assurance, knowledge management, modeling and simulation, network transformation and management and program management.

About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.